Assume Stansfield Corporation Is Utilizing Its Fixed Assets at 90

Multiple Choice

Assume Stansfield Corporation is utilizing its fixed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains unchanged. If sales increase by 20%, what will total fixed assets be?

A) $256 million
B) $286 million
C) $313 million
D) $359 million
E) $470 million